Back to startup mode: Fiverr cuts 30% of staff in AI-first overhaul

Fiverr's AI-first reset: 30% layoffs and a new operating model

Fiverr is cutting about 250 roles, roughly 30% of its workforce, as it rebuilds the company around AI. CEO Micha Kaufman told employees the company is "going back to startup mode" to move faster and rebuild its tech stack for an AI-first future.

He framed it as "a painful reset," promising a leaner structure, fewer layers, and higher output per person. Customers were told that "your business on Fiverr won't be impacted in any way throughout this transformation."

What changed and why

Kaufman's memo points to speed and pressure. "The speed at which technology is changing… demand new thinking and higher velocity," he wrote. Fiverr has "embrace[d] AI across everything we do," and now aims to "accelerate this mode of work."

The target state: "an AI-first company that's leaner, faster, with a modern AI-focused tech infrastructure, a smaller team, each with substantially greater productivity, and far fewer management layers."

Who's affected

The company did not specify which roles are being cut. Fiverr operates a large marketplace with processes handled by clients and freelancers, allowing a small core team to support about 4 million customers globally.

That model is now being pushed further: fewer people, more automation, and a rebuilt stack to boost throughput.

The broader pattern

Fiverr joins a growing list of firms restructuring around AI. Duolingo has already reduced contract work in favor of AI. Microsoft reported saving about $500 million after more than 15,000 layoffs and heavier AI use, alongside an $80 billion AI infrastructure push. Intel said it would cut about 5,000 U.S. roles to fund its shift. Salesforce's CEO said AI now does about half of the company's work.

Leaders are blunt about the impact. Anthropic's CEO, Dario Amodei, said to "stop sugar-coating it," estimating AI could cut 50% of entry-level white-collar jobs. Researcher Dr. Roman Yampolskiy has warned of up to 99% job loss by 2030. Microsoft's AI chief, Mustafa Suleyman, said AI will "deliver the greatest boost to productivity in the history of our species" and that the shift will be "destabilizing" to work, politics, and "what it means to be human."

What HR, IT, and Development teams should do now

Treat AI as an operating model change, not just a tool rollout. Build a 90-day plan that reduces bottlenecks, sets guardrails, and retrains teams into higher-leverage work.

• HR: Run a skills inventory and map roles to AI-augmented workflows. Stand up internal mobility tracks and targeted reskilling. Refresh job architectures for smaller, flatter teams. Update policies for AI use, disclosure, quality standards, and data privacy. Prepare humane offboarding with outplacement support.
• IT: Define a core AI platform (model access, data pipelines, vector stores, observability). Lock in data governance, PII handling, and audit trails. Control costs with usage caps and evaluation gates. Build MLOps processes for versioning, monitoring, and incident response.
• Development: Standardize on coding copilots, test-first practices, and automated security checks. Create prompt repositories, context packs, and review guidelines. Track productivity by throughput and defect rates, not hours. Prioritize refactors that enable retrieval, orchestration, and safe automation.
• Cross-functional: Form small, accountable squads with clear outcomes. Fund short, high-signal experiments. Communicate frequently and plainly about role changes, timelines, and metrics.

Signals your company might be next

• Leadership memos using "AI-first," "fewer layers," or "startup mode."
• Hiring freezes in support, content, QA, or operations while AI tooling expands.
• Budget shifts from headcount to model access, data platforms, and GPUs.
• Mandates to rebuild core systems around AI-driven workflows.

Practical upskilling paths

If your role involves repeatable analysis, content, code, design, or support, move fast to upgrade your skills and tool stack. Focus on AI-assisted workflows, evaluation, data handling, and measurable impact.

• Curated AI courses by job to pivot your current role into higher-leverage work.
• Popular AI certifications to validate skills with hiring managers.

Bottom line

Fewer people, more software, higher throughput. That's the direction. Whether you run HR, IT, or Engineering, the move is the same: redesign work around AI, set clear rules, and help people reskill into the highest-impact parts of the system.

If you wait for a memo, you waited too long.